A Process of Making Decisions on the Basis of Experience

question 52

Multiple Choice

A process of making decisions on the basis of experience and accumulated judgment is ________ decision making.

• A)rational
• B)intuitive
• C)bounded
• D)satisficing
• E)programmed

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Definitions:

Physical Units Method

A cost allocation method used to distribute costs among different units of output, typically applied in industries with uniform products.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.

By-products

By-products are secondary products derived from the manufacturing process or chemical reaction, which may have less value than the primary product but can still be profitable.

Joint Costs

are costs incurred in the production process that benefit multiple, often separable, products or project components.